You’ve saved your deposit and set your sights on investing in the property market. The biggest decision you now face is buying an established house you can move right into or building a new home from scratch. Both options can offer financial and lifestyle benefits, but how do you decide what’s right for you?
We share the pros and cons of buying and building a home to help you determine what option best suits your current financial position and your desired lifestyle.
The Pros of Buying an Existing Home
There are several benefits of buying an existing home that appeals to those wanting to invest in the property market.
To start with, the process of purchasing an established property is much quicker than building a new home. Once you’ve found the right house and your offer has been accepted, you can pay your deposit and move into your new digs within a month.
Building a new home on the other hand, requires plenty of time to plan, get council approval and build. This often means you’ll be needing to finance rent until your new property is somewhat liveable.
Building a new home may give you the ability to design it to suit your style and way of living, but buying an established home provides you with the bones. You can then put your own stamp on it, which can often be more cost effective than building from the ground up. If you are thinking the home requires updates, before you purchase the property, seek the help of a builder in your state by searching best home builders in Victoria, NSW, Queensland etc. Meet the contractor at an open inspection to gauge their thoughts on the costs involved to transform the house into your dream home.
The pros of buying a new home
Building a new home from scratch may seem daunting, but it can offer potential benefits and can be particularly rewarding once you’ve moved in.
A new home can provide substantial savings particularly if you’re a first home buyer or looking to purchase an investment. Depending the state you live in, you may benefit from reduced stamp duty and a bigger First Home Owner Grant. You may also benefit from tax breaks at the end of the financial year through claiming depreciation.
Buying land in an upcoming area can also be cheaper than buying in an established, inner-city suburb. Take land for sale in the Geelong area for example. It’s much cheaper buying a block of land in areas surrounding Geelong than it is to buy in Melbourne’s suburbs such as Malvern or Kew. In addition, the real estate market is far less competitive, reducing the stress and giving you a greater budget to build.
Building a new home also offers potential savings as you’re less likely need to make upgrades or repairs in the immediate future. Most new homes are built to be more energy efficient and with advanced technology than those built in the years gone. Your heating bills for example are likely to be less in a newer home than if you lived in a home built 30 years ago due to orientation, and efficient glazing and insulation. An additional incentive is owning a home with a current building warranty in the event any repairs or defects arise.
But by far, the most appealing aspect of building a new home is having creative control to design to suit your style and way of living. You’ll be able to choose a floorplan that works for your family, modern finishes you like and the features you’ve long desired in a home. And if you don’t want the stress of designing a new home from scratch, a project home can still give you some design control, however the plans are already taken care of reducing the time and cost of the project.